2000 (3) TMI 92 - AT - Central Excise

Summary

Issues involved: The issue involved in this appeal is whether central excise duty is chargeable on the goods manufactured and cleared by the respondents M/s. B.H.P. Engineers as parts of conveyor or as conveyor itself.

Details of the Judgment:

Issue 1 - Central Excise Duty on Goods:
The Department argued that the respondents cleared various parts of conveyors showing them as part-shipment of the conveyor, paying duty applicable to conveyors instead of higher duty for parts. They claimed the clearances should be treated as parts of conveyors due to non-compliance with prescribed procedures. The Respondents contended they manufactured and cleared only conveyors, fulfilling customer orders, and maintained proper documentation. They argued that conveyors, due to their size, were cleared in parts for easier installation, citing interpretative rules and circulars supporting their classification as complete machines. The Asstt. Commissioner acknowledged the conveyors were cleared in parts. The Tribunal noted that orders were for conveyors, and the goods cleared were conveyors, following the Explanatory Note of H.S.N. and relevant precedents. The Tribunal upheld the impugned order, rejecting the appeal by the Revenue.

Conclusion:
The Tribunal found in favor of the respondents, determining that the goods cleared were conveyors as ordered by customers, and the classification as parts of conveyors was not warranted. The Tribunal emphasized adherence to customer orders, interpretative rules, and relevant circulars in deciding the case.